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BEST VALUE The Virginia Way

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Enables selection of the best suppliers who are most likely to provide quality ... Bidder/Offeror with best value based on evaluation factors ... – PowerPoint PPT presentation

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Title: BEST VALUE The Virginia Way


1
BEST VALUE - The Virginia Way
  • Don Rainey, VCO
  • Nancy Davis, CPPO, VCO
  • DGS/DPS Forum 2000

2
AGENDA
  • Background
  • Overview
  • Approach
  • Procurement Planning
  • Solicitation Structure
  • Receipt, Evaluation, Award
  • Contract Administration
  • Questions Answers

3
BACKGROUND
  • Procurement Task Force Recommendations- Amend
    the law (VPPA)- Develop a training program-
    Provide adequate resources for training-
    Encourage Best Value Procurement Concepts
  • Code of Virginia ( 11-35G 11.37)
  • Agency Procurement Surplus Property Manual
    (APSPM)- PIM 98-006- Chapter 1 Appendix A

4
OVERVIEW
  • Definition
  • Best Value as predetermined in the
  • solicitation, means the overall combination of
  • quality, price, and various elements of
  • required services that in total are optimal
  • relative to a public bodys needs.

5
OVERVIEW (CONT)
  • When to Use Best Value
  • Use best value when it is essential to evaluate
  • and compare factors in addition to quality or
  • price in order to select the most advantageous
  • offer.

6
OVERVIEW (CONT)
  • Strengths
  • Allows greater flexibility to subjectively
    compare technical and cost factors to determine
    the value of the relative strengths, weaknesses,
    and risks of the offers.
  • Enables selection of the best suppliers who are
    most likely to provide quality products, on time,
    and at reasonable cost.
  • Takes advantage of the experience and independent
    judgement of the evaluator(s).

7
OVERVIEW (CONT)
  • Weaknesses
  • Using too many evaluation criteria. A large
    number of criteria dilutes consideration of those
    which are truly important.
  • Failure too make significant investment in
    resources needed for a competent and defensible
    value analysis.
  • It is an inherently subjective process and maybe
    difficult too evaluate and document.

8
OVERVIEW (CONT)
  • Key Elements of Best Value Purchasing
  • Specifications
  • Evaluation Process
  • Contract Administration

9
APPROACH
  • Small Purchases (15,000 up to 50,000) - Best
    Value Bidding - Best Value Proposals
  • Formal Process (50,000 and above) (TBD)-
    Request for Best Value Proposals
  • Establish an Ad Hoc Committee- DPS Staff -
    Agency/Institution Representatives
  • Pilot Agencies (January - June 2000)DGS, DIT,
    DMHMRSAS, VDH, DOC, VCU MWC

10
PROCUREMENT PLANNING
  • 15,000 up to 50,000- Must solicit a minimum of
    4 valid sources (SWAM)- Publicly post (VBO
    advertising recommended)- Provide a written
    description of requirements- Receive written
    bids/proposals
  • Market Analysis- Existing products/services-
    Capable sources, including SWAM businesses-
    Generalized pricing information

11
PROCUREMENT PLANNING (CONT)
  • Market Analysis (Cont)- Varying levels of
    product performance and quality- Commercial
    practices- Supportability- Successful
    acquisitions practices of other agencies,
    institutions, or organizations

12
PROCUREMENT PLANNING (CONT)
  • Scope of Work, Statement of Needs, Specifications
    or Other Requirements
  • Evaluation Factors
  • APSPM Requirements

13
SOLICITATION STRUCTURE
  • Best Value Bidding
  • Purpose
  • Scope of Work/Specification(s)
  • Pre-bid Conference
  • Evaluation Criteria (Objective)
  • General Terms Conditions
  • Special Terms Conditions
  • Pricing Schedule
  • Attachments
  • Best Value Proposals
  • Purpose
  • Statement of Needs
  • Pre-proposal Conference
  • Evaluation Criteria (Primarily Subjective)
  • General Terms Conditions
  • Special Terms Conditions
  • Pricing Schedule
  • Attachments

14
EVALUATION FACTORS
  • Subjective
  • Appearance
  • Durability
  • Experience
  • Facilities
  • Value
  • Staff Qualifications
  • Risk (High, Medium or Low)
  • Technical Approach
  • Testing/Quality Assurance
  • User Friendly
  • Past Performance
  • Objective
  • Certification/Qualifications
  • Compatibility
  • Total Ownership Costs
  • E-commerce
  • Environmental Impact
  • Material
  • Performance
  • Resources
  • Size
  • Response Time
  • Past Performance

15
RECEIPT, EVALUATION, AWARD
  • Receipt
  • Establish due date time
  • Specify in solicitation
  • Bids/Proposals can be returned by Faxback,
    Electronic, Hand-Delivered or Mail
  • Maybe opened upon receipt

16
RECEIPT, EVALUATION, AWARD (CONT)
  • Evaluation
  • Conducted by buyer and/or end user
  • Use the Adjectival rating method
  • Use Go/No-Go approach
  • Evaluate price- Realism (Is the overall costs
    proposed realistic?) - Reasonableness (Is the
    price fair and reasonable)- Completeness (Cost
    estimate, information, performance)

17
RECEIPT, EVALUATION, AWARD (CONT)
  • Adjectival
  • Adjectives such as exceptional, acceptable,
  • marginal, and unacceptable are used to
  • indicate the degree to which the bid/proposal
  • has met the standard for each factor evaluated.

18
RATING METHOD
19
EVALUATION CRITERIA SCORE SHEET
20
RECEIPT, EVALUATION, AWARD (CONT)
  • Award
  • Bidder/Offeror with best value based on
    evaluation factors
  • Written justification of the decision to award
  • Place in procurement file

21
CONTRACT ADMINISTRATION
  • Assign in writing
  • Outline duties and responsibilities
  • Monitor contract or performance
  • Document performance (Good/Poor)
  • Provide contracting officer with evaluation
    reports

22
QUESTIONS ANSWERS
  • BEST VALUE PANEL
  • Nancy Davis
  • Paul Higgins
  • Don Rainey
  • Judith Wallace
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